Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Airbnb Inc., solvency ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Debt to Equity Ratio
- The debt to equity ratio exhibits a consistent downward trend from 0.63 in 2020 to 0.24 in both 2023 and 2024. This indicates a gradual reduction in reliance on debt relative to shareholders' equity over the five-year period, suggesting an improving financial structure with decreased financial risk.
- Debt to Equity Ratio Including Operating Lease Liability
- When operating lease liabilities are included, the debt to equity ratio similarly declines from 0.8 in 2020 to 0.27 in 2024. This trend mirrors the standard debt to equity ratio, reflecting coherent deleveraging even when additional liabilities are considered.
- Debt to Capital Ratio
- The debt to capital ratio shows a steady decrease from 0.39 in 2020 to 0.19 in 2024, indicating that the proportion of debt in the company’s overall capital structure is being reduced. This is consistent with the trends observed in the debt to equity ratios.
- Debt to Capital Ratio Including Operating Lease Liability
- Including operating lease liabilities, the debt to capital ratio decreases from 0.44 in 2020 to 0.21 in 2024. This reinforces the pattern of progressive deleveraging when considering both financial and operating lease obligations.
- Debt to Assets Ratio
- The debt to assets ratio steadily declines from 0.17 in 2020 to 0.10 in 2024, corroborating the trends of decreasing debt levels relative to total assets. The reduction points to enhanced asset coverage and possibly improved asset quality or growth in asset base.
- Debt to Assets Ratio Including Operating Lease Liability
- When operating lease liabilities are accounted for, this ratio falls from 0.22 in 2020 to 0.11 in 2024. The trend highlights consistent improvement in the leverage position even after including additional liabilities.
- Financial Leverage Ratio
- The financial leverage ratio declines from 3.62 in 2020 to 2.49 in 2024, indicating a reduction in the company's use of debt relative to equity to finance its assets. This suggests effective management of capital structure aimed at strengthening the equity base.
- Interest Coverage Ratio
- The interest coverage ratio demonstrates significant volatility but a pronounced improvement over the period. Starting from a negative -26.27 in 2020, indicating insufficient earnings to cover interest expenses, it improves dramatically to 139.79 in 2024. This suggests a substantial enhancement in the ability to meet interest obligations, reflecting improved profitability and/or reduced interest expenses.
- Fixed Charge Coverage Ratio
- The fixed charge coverage ratio similarly improves from a negative -16.81 in 2020 to 44.26 in 2024. The upward trend reflects a strengthening capacity to cover fixed financial obligations beyond just interest, indicative of a healthier financial position and operational performance.
Debt Ratios
Coverage Ratios
Debt to Equity
Airbnb Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | —) | —) | —) | —) | 10) | |
| Long-term debt, net of current portion | 1,995) | 1,991) | 1,987) | 1,983) | 1,816) | |
| Total debt | 1,995) | 1,991) | 1,987) | 1,983) | 1,826) | |
| Stockholders’ equity | 8,412) | 8,165) | 5,560) | 4,776) | 2,902) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.24 | 0.24 | 0.36 | 0.42 | 0.63 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Booking Holdings Inc. | — | — | 4.51 | 1.77 | 2.46 | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Debt to Equity, Sector | ||||||
| Consumer Services | — | — | — | 18.97 | — | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | 1.12 | 1.37 | 1.54 | 1.52 | 2.37 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 1,995 ÷ 8,412 = 0.24
2 Click competitor name to see calculations.
- Total Debt
- The total debt of the company showed a marginal increase over the five-year period, rising from $1,826 million in 2020 to $1,995 million in 2024. This increase is relatively modest, indicating stable debt levels with minimal growth year over year.
- Stockholders’ Equity
- Stockholders’ equity experienced significant growth throughout the period analyzed. Starting at $2,902 million in 2020, it increased sharply to $4,776 million in 2021 and continued to rise steadily in subsequent years, reaching $8,412 million by the end of 2024. This represents nearly a threefold increase in equity, signaling strong capital accumulation and potentially retained earnings or equity financing.
- Debt to Equity Ratio
- The debt to equity ratio declined substantially over the period. Initially at 0.63 in 2020, the ratio decreased to 0.42 in 2021 and continued to drop, settling at 0.24 in both 2023 and 2024. This downward trend reflects an improving financial leverage position, as the company’s increase in equity outpaced the modest rise in debt, resulting in lower relative debt risk.
- Overall Financial Trends
- The data indicates a strong enhancement in the company’s financial structure driven primarily by significant growth in stockholders’ equity, while total debt remained relatively steady. The improvement in the debt to equity ratio suggests a more conservative capital structure over time, reducing financial risk and potentially enhancing creditworthiness.
Debt to Equity (including Operating Lease Liability)
Airbnb Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | —) | —) | —) | —) | 10) | |
| Long-term debt, net of current portion | 1,995) | 1,991) | 1,987) | 1,983) | 1,816) | |
| Total debt | 1,995) | 1,991) | 1,987) | 1,983) | 1,826) | |
| Operating lease liabilities, current | 63) | 61) | 59) | 63) | 57) | |
| Operating lease liabilities, noncurrent | 236) | 252) | 295) | 372) | 431) | |
| Total debt (including operating lease liability) | 2,294) | 2,304) | 2,341) | 2,418) | 2,313) | |
| Stockholders’ equity | 8,412) | 8,165) | 5,560) | 4,776) | 2,902) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.27 | 0.28 | 0.42 | 0.51 | 0.80 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Booking Holdings Inc. | — | — | 4.75 | 1.85 | 2.56 | |
| Chipotle Mexican Grill Inc. | 1.24 | 1.32 | 1.58 | 1.53 | 1.56 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Consumer Services | — | — | — | 27.13 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 1.42 | 1.72 | 1.94 | 1.90 | 2.84 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 2,294 ÷ 8,412 = 0.27
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt shows a gradual decline over the five-year period from 2020 to 2024. Starting at $2,313 million in 2020, the debt slightly increased in 2021 to $2,418 million, then decreased steadily each subsequent year, reaching $2,294 million by 2024. This indicates a modest reduction in the company’s overall debt levels after a small increase in the second year.
- Stockholders’ equity
- Stockholders’ equity exhibits a strong upward trend throughout the period. It rose substantially from $2,902 million in 2020 to $4,776 million in 2021, followed by consistent growth each year thereafter, culminating at $8,412 million in 2024. The significant increase suggests a considerable strengthening of the company’s capital base and retained earnings over the five years.
- Debt to equity (including operating lease liability)
- The debt to equity ratio shows a clear decreasing trend, moving from 0.8 in 2020 to 0.27 in 2024. This decline reflects the combination of relatively stable or declining debt levels alongside rapidly increasing equity, indicating an improving balance sheet leverage position and enhanced financial stability.
Debt to Capital
Airbnb Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | —) | —) | —) | —) | 10) | |
| Long-term debt, net of current portion | 1,995) | 1,991) | 1,987) | 1,983) | 1,816) | |
| Total debt | 1,995) | 1,991) | 1,987) | 1,983) | 1,826) | |
| Stockholders’ equity | 8,412) | 8,165) | 5,560) | 4,776) | 2,902) | |
| Total capital | 10,407) | 10,156) | 7,547) | 6,758) | 4,727) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.19 | 0.20 | 0.26 | 0.29 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Booking Holdings Inc. | 1.32 | 1.24 | 0.82 | 0.64 | 0.71 | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | 1.10 | 1.13 | 1.19 | 1.15 | 1.26 | |
| Starbucks Corp. | 1.92 | 2.08 | 2.41 | 1.57 | 1.96 | |
| Debt to Capital, Sector | ||||||
| Consumer Services | 1.04 | 1.06 | 1.06 | 0.95 | 1.09 | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | 0.53 | 0.58 | 0.61 | 0.60 | 0.70 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,995 ÷ 10,407 = 0.19
2 Click competitor name to see calculations.
- Total debt
- The total debt exhibits a gradual increase over the reported periods, rising from US$1,826 million in 2020 to US$1,995 million in 2024. The increase is relatively modest and steady, indicating stable borrowing levels without substantial fluctuations year-over-year.
- Total capital
- Total capital shows a pronounced upward trend, growing from US$4,727 million in 2020 to US$10,407 million in 2024. This significant growth suggests either increased equity financing or retained earnings contributing to the capital base, reflecting a substantial expansion in the company’s financing resources over time.
- Debt to capital ratio
- The debt to capital ratio decreases markedly from 0.39 in 2020 to 0.19 in 2024, indicating an improvement in the capital structure. Despite a slight rise in total debt, the faster growth in total capital causes the leverage ratio to decline, pointing to a reduced reliance on debt funding relative to overall capital and potentially enhancing financial stability.
Debt to Capital (including Operating Lease Liability)
Airbnb Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | —) | —) | —) | —) | 10) | |
| Long-term debt, net of current portion | 1,995) | 1,991) | 1,987) | 1,983) | 1,816) | |
| Total debt | 1,995) | 1,991) | 1,987) | 1,983) | 1,826) | |
| Operating lease liabilities, current | 63) | 61) | 59) | 63) | 57) | |
| Operating lease liabilities, noncurrent | 236) | 252) | 295) | 372) | 431) | |
| Total debt (including operating lease liability) | 2,294) | 2,304) | 2,341) | 2,418) | 2,313) | |
| Stockholders’ equity | 8,412) | 8,165) | 5,560) | 4,776) | 2,902) | |
| Total capital (including operating lease liability) | 10,706) | 10,469) | 7,901) | 7,194) | 5,215) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.21 | 0.22 | 0.30 | 0.34 | 0.44 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Booking Holdings Inc. | 1.30 | 1.22 | 0.83 | 0.65 | 0.72 | |
| Chipotle Mexican Grill Inc. | 0.55 | 0.57 | 0.61 | 0.61 | 0.61 | |
| McDonald’s Corp. | 1.08 | 1.10 | 1.14 | 1.10 | 1.18 | |
| Starbucks Corp. | 1.41 | 1.48 | 1.58 | 1.29 | 1.46 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 1.03 | 1.04 | 1.05 | 0.96 | 1.07 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.59 | 0.63 | 0.66 | 0.65 | 0.74 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 2,294 ÷ 10,706 = 0.21
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
-
The total debt remained relatively stable over the five-year period, showing a slight decrease from US$2313 million in 2020 to US$2294 million in 2024. The highest level was observed in 2021 at US$2418 million, after which the debt gradually declined each year.
- Total Capital (including operating lease liability)
-
Total capital exhibited a significant upward trend, increasing sharply from US$5215 million in 2020 to US$10,706 million in 2024. This represents more than a doubling in overall capital over the five-year span, with notable accelerations in growth especially from 2022 onward.
- Debt to Capital Ratio (including operating lease liability)
-
The debt to capital ratio declined consistently from 0.44 in 2020 to 0.21 in 2024. This indicates a reduction in leverage and an improvement in the company’s capital structure, as debt forms a progressively smaller proportion of total capital over time. The decrease is particularly pronounced between 2022 and 2024, reflecting the combined effect of stable debt levels and rapidly increasing capital.
- Overall Analysis
-
Over the period analyzed, the company appeared to strengthen its financial position by expanding total capital substantially while maintaining stable total debt levels. The resulting decreasing debt to capital ratio suggests enhanced financial flexibility and potentially lower financial risk. This trend may indicate a strategic focus on equity or retained earnings growth, reduction in reliance on debt financing, or asset expansion supported by non-debt sources.
Debt to Assets
Airbnb Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | —) | —) | —) | —) | 10) | |
| Long-term debt, net of current portion | 1,995) | 1,991) | 1,987) | 1,983) | 1,816) | |
| Total debt | 1,995) | 1,991) | 1,987) | 1,983) | 1,826) | |
| Total assets | 20,959) | 20,645) | 16,038) | 13,708) | 10,491) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.10 | 0.10 | 0.12 | 0.14 | 0.17 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Booking Holdings Inc. | 0.60 | 0.59 | 0.49 | 0.46 | 0.55 | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| McDonald’s Corp. | 0.73 | 0.73 | 0.74 | 0.66 | 0.71 | |
| Starbucks Corp. | 0.50 | 0.52 | 0.53 | 0.47 | 0.54 | |
| Debt to Assets, Sector | ||||||
| Consumer Services | 0.52 | 0.52 | 0.53 | 0.49 | 0.56 | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | 0.32 | 0.34 | 0.35 | 0.36 | 0.41 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,995 ÷ 20,959 = 0.10
2 Click competitor name to see calculations.
- Total debt
- The total debt of the company exhibits a gradual increase over the five-year period. Starting at $1,826 million in 2020, it rises steadily each year, reaching $1,995 million by the end of 2024. The increment in total debt is relatively modest, indicating controlled debt growth.
- Total assets
- Total assets demonstrate significant growth throughout the same period. Beginning at $10,491 million in 2020, assets grow consistently each year, culminating at $20,959 million in 2024. This reflects a near doubling of total assets over five years, suggesting successful expansion or accumulation of resources.
- Debt to assets ratio
- The debt to assets ratio shows a consistent declining trend across the analyzed timeframe. From 0.17 in 2020, the ratio decreases yearly to 0.10 by 2023 and remains stable at this level in 2024. This downward movement indicates an improvement in the company’s leverage position, as debt comprises a smaller proportion of total assets over time.
Debt to Assets (including Operating Lease Liability)
Airbnb Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | —) | —) | —) | —) | 10) | |
| Long-term debt, net of current portion | 1,995) | 1,991) | 1,987) | 1,983) | 1,816) | |
| Total debt | 1,995) | 1,991) | 1,987) | 1,983) | 1,826) | |
| Operating lease liabilities, current | 63) | 61) | 59) | 63) | 57) | |
| Operating lease liabilities, noncurrent | 236) | 252) | 295) | 372) | 431) | |
| Total debt (including operating lease liability) | 2,294) | 2,304) | 2,341) | 2,418) | 2,313) | |
| Total assets | 20,959) | 20,645) | 16,038) | 13,708) | 10,491) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.11 | 0.11 | 0.15 | 0.18 | 0.22 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Booking Holdings Inc. | 0.62 | 0.62 | 0.52 | 0.48 | 0.57 | |
| Chipotle Mexican Grill Inc. | 0.49 | 0.50 | 0.54 | 0.53 | 0.53 | |
| McDonald’s Corp. | 0.94 | 0.95 | 0.97 | 0.92 | 0.98 | |
| Starbucks Corp. | 0.82 | 0.83 | 0.84 | 0.75 | 0.84 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 0.71 | 0.71 | 0.72 | 0.70 | 0.78 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.41 | 0.43 | 0.44 | 0.45 | 0.50 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 2,294 ÷ 20,959 = 0.11
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt remained relatively stable over the five-year period, starting at $2,313 million in 2020 and slightly fluctuating to $2,294 million by 2024. There was a minor increase in 2021 to $2,418 million followed by gradual decreases in subsequent years.
- Total assets
- Total assets showed a consistent and significant upward trend, increasing from $10,491 million in 2020 to $20,959 million in 2024. This reflects a near doubling of asset base over the five years, indicating substantial growth and expansion of the company's asset holdings.
- Debt to assets (including operating lease liability)
- The debt to assets ratio demonstrated a clear declining trend, decreasing from 0.22 in 2020 to 0.11 in both 2023 and 2024. This suggests an improvement in the company's leverage position, as the proportion of debt relative to total assets has reduced by half, indicating stronger asset coverage and potentially lower financial risk.
Financial Leverage
Airbnb Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 20,959) | 20,645) | 16,038) | 13,708) | 10,491) | |
| Stockholders’ equity | 8,412) | 8,165) | 5,560) | 4,776) | 2,902) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.49 | 2.53 | 2.88 | 2.87 | 3.62 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Booking Holdings Inc. | — | — | 9.12 | 3.83 | 4.47 | |
| Chipotle Mexican Grill Inc. | 2.52 | 2.63 | 2.93 | 2.90 | 2.96 | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| Financial Leverage, Sector | ||||||
| Consumer Services | — | — | — | 38.83 | — | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | 3.47 | 4.00 | 4.38 | 4.26 | 5.72 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 20,959 ÷ 8,412 = 2.49
2 Click competitor name to see calculations.
- Total Assets
- Total assets exhibited a consistent upward trend over the five-year period. Starting at $10,491 million in 2020, the total assets increased steadily each year, reaching $20,959 million by the end of 2024. This represents almost a doubling of total assets over the timeframe, indicating significant growth in the company's asset base.
- Stockholders’ Equity
- Stockholders' equity also showed a strong increasing pattern, rising from $2,902 million in 2020 to $8,412 million in 2024. The growth in equity was particularly pronounced between 2022 and 2023, where it increased from $5,560 million to $8,165 million, suggesting either strong retained earnings, additional equity financing, or other equity-increasing activities during that period. The growth in equity outpaced that of total assets proportionally, reflecting an improving capitalization structure.
- Financial Leverage
- Financial leverage ratio followed a downward trend, decreasing from 3.62 in 2020 to 2.49 in 2024. This implies that the company is relying less on debt relative to equity over time. The decline in this ratio is consistent with the faster growth of stockholders' equity compared to total assets, indicating an improvement in financial stability and possibly a reduction in financial risk.
- Overall Analysis
- The data indicates that the company has experienced substantial growth in its asset base while simultaneously strengthening its equity position. The decreasing financial leverage ratio complements these trends by indicating a gradual deleveraging or improved balance between debt and equity financing. Such trends suggest a prudent approach to financial management, likely aimed at enhancing solvency and reducing financial risk, while maintaining a growth trajectory in assets.
Interest Coverage
Airbnb Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 2,648) | 4,792) | 1,893) | (352) | (4,585) | |
| Add: Income tax expense | 683) | (2,690) | 96) | 52) | (97) | |
| Add: Interest expense | 24) | 83) | 24) | 438) | 172) | |
| Earnings before interest and tax (EBIT) | 3,355) | 2,185) | 2,013) | 137) | (4,510) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 139.79 | 26.33 | 83.88 | 0.31 | -26.27 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Booking Holdings Inc. | 6.63 | 7.11 | 11.03 | 5.39 | 2.59 | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | 7.87 | 8.73 | 7.48 | 8.70 | 6.04 | |
| Starbucks Corp. | 9.84 | 10.82 | 9.76 | 12.40 | 3.66 | |
| Interest Coverage, Sector | ||||||
| Consumer Services | 9.25 | 9.69 | 10.10 | 7.78 | 2.60 | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | 14.99 | 12.27 | 9.45 | 13.29 | 7.81 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,355 ÷ 24 = 139.79
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT showed a significant turnaround over the five-year period. Starting with a substantial loss of 4,510 million USD in 2020, it transitioned to positive territory with 137 million USD in 2021. This positive trend continued with strong growth, reaching 2,013 million USD in 2022 and further increasing to 2,185 million USD in 2023. The upward momentum accelerated in 2024, with EBIT climbing to 3,355 million USD, indicating improved profitability and operational efficiency over time.
- Interest Expense
- The interest expense fluctuated through the period with an initial amount of 172 million USD in 2020. It rose significantly to 438 million USD in 2021 before drastically decreasing to 24 million USD in 2022. The expense rose again to 83 million USD in 2023 but then declined back to 24 million USD in 2024. These fluctuations suggest variability in debt levels or interest rates affecting the borrowing costs during these years.
- Interest Coverage Ratio
- The interest coverage ratio exhibited a dramatic improvement from a deeply negative figure of -26.27 in 2020 to a barely positive ratio of 0.31 in 2021. Subsequently, the ratio surged to a very high level of 83.88 in 2022, followed by a decline to 26.33 in 2023 and then a peak at 139.79 in 2024. This pattern reflects the company’s increasing ability to cover its interest expenses with EBIT, underscoring improved financial health and reduced risk related to interest obligations.
Fixed Charge Coverage
Airbnb Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 2,648) | 4,792) | 1,893) | (352) | (4,585) | |
| Add: Income tax expense | 683) | (2,690) | 96) | 52) | (97) | |
| Add: Interest expense | 24) | 83) | 24) | 438) | 172) | |
| Earnings before interest and tax (EBIT) | 3,355) | 2,185) | 2,013) | 137) | (4,510) | |
| Add: Operating lease cost | 53) | 58) | 77) | 83) | 91) | |
| Earnings before fixed charges and tax | 3,408) | 2,243) | 2,090) | 221) | (4,419) | |
| Interest expense | 24) | 83) | 24) | 438) | 172) | |
| Operating lease cost | 53) | 58) | 77) | 83) | 91) | |
| Fixed charges | 77) | 141) | 101) | 521) | 263) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 44.26 | 15.91 | 20.69 | 0.42 | -16.81 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Booking Holdings Inc. | 5.96 | 6.09 | 8.12 | 3.82 | 2.03 | |
| Chipotle Mexican Grill Inc. | 5.13 | 4.71 | 3.98 | 3.23 | 1.88 | |
| McDonald’s Corp. | 4.35 | 4.62 | 3.92 | 4.32 | 3.28 | |
| Starbucks Corp. | 3.17 | 3.51 | 3.08 | 3.61 | 1.58 | |
| Fixed Charge Coverage, Sector | ||||||
| Consumer Services | 4.77 | 4.75 | 4.32 | 3.66 | 1.60 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | 5.96 | 4.98 | 3.70 | 5.63 | 3.72 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,408 ÷ 77 = 44.26
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax exhibited a significant upward trend from 2020 to 2024. Starting from a negative value of -4419 million US dollars in 2020, the figure increased dramatically to positive amounts in subsequent years, reaching 221 million in 2021 and continuing a steady rise through 2090 million in 2022 and 2243 million in 2023. By 2024, this metric further improved to 3408 million, indicating substantial operational improvement over the five-year period.
- Fixed charges
- Fixed charges displayed variability without a clear upward or downward trend. The charges rose notably from 263 million in 2020 to 521 million in 2021, then declined sharply to 101 million in 2022. Following this, the charges moderately increased to 141 million in 2023 before decreasing again to 77 million in 2024. Overall, fixed charges decreased in the later years compared to the peak observed in 2021.
- Fixed charge coverage ratio
- The fixed charge coverage ratio improved markedly over the period analyzed. In 2020, the ratio was highly negative at -16.81, consistent with the significant negative earnings before fixed charges and tax reported that year. The ratio improved to 0.42 in 2021, indicating marginal coverage of fixed charges. Substantial enhancements followed in 2022 and 2023, with ratios increasing to 20.69 and 15.91 respectively. By 2024, the ratio had reached a notably high level of 44.26, demonstrating strong ability to cover fixed charges from operating earnings.